Snoop bought a new house, the price of the house is $5,000,000. How much will is...
Snoop bought a new house, the price of the house is $5,000,000. How much will is Snoop's monthly payment if he puts 20% down on using a 30-year mortgage with an APR of 3.375%?
Homework Answers
Information provided:
Price of the house= $5,000,000
Down payment= 20%*$5,000,000= $1,000,000
Mortgage= Present value= $5,000,000 - $1,000,000= $4,000,000
Time= 30 years*12= 360 months
Monthly interest rate= 3.375%/12= 0.2813%
The monthly payment is calculated by entering the below in a financial calculator:
PV= -4,000,000
N= 360
I/Y= 0.2813
Press the CPT key and PMT to compute the amount of monthly payment.
The value obtained is 17,683.85
Therefore, the amount of monthly payment is $17,683.85.
In case of any query, kindly comment on the solution.
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